The Internal Revenue Service (IRS) has issued final regs on valuing charitable donations that specifically cite the Uniform Standards of Professional Appraisal Practice (USPAP) of The Appraisal Foundation. As stated in Section III (B) of the regs, a qualified appraiser is to perform appraisals according to the “substance and principles of the Uniform Standards of Professional Appraisal Practice [USPAP] as developed by the Appraisal Standards Board of the Appraisal Foundation.”
The regs stop short of requiring strict compliance with USPAP, which would “eliminate use of all other appraisal standards, including some that are generally accepted in the appraisal industry,” the regs say. They go on to say that “it is beneficial to provide some flexibility by requiring conformity with appraisal standards that are consistent with the substance and principles of USPAP rather than requiring that all appraisals be prepared strictly in accordance with USPAP.”
Also, the final regs also do not cite any specific valuation credential. “The Treasury Department and the IRS do not require or prefer the designation of any particular appraiser organization, and, therefore, the final regulations do not contain examples of any designations.”
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